The Central Bank of Nigeria [CBN] has announced that its open banking framework will officially go live in August 2025, marking a significant milestone in the country’s financial sector. This initiative positions Nigeria as the first African nation to implement open banking, following the release of its regulatory framework in 2021.

Open banking allows customers to consent to the sharing of their financial data—such as account balances, transaction histories, and spending patterns—with regulated third-party financial institutions. This data sharing is facilitated through standardized APIs, ensuring secure and consistent access across the banking ecosystem. A central registry will authenticate all participants, while a consent management framework linked to customers’ Bank Verification Numbers [BVNs] will maintain customer control over data access.

Accordingly, the CBN has revised its approach to open banking governance by establishing independent committees led by banking and financial institution professionals, moving away from central control under the Nigerian Interbank Settlement System [NIBSS]. This shift aims to foster greater industry collaboration and innovation.

The implementation of open banking is expected to enhance financial inclusion by enabling fintech companies to develop personalized financial products and services. It is also expected that access to comprehensive customer data will allow for improved credit assessments, potentially increasing credit availability for the estimated 70% of bank account holders currently lacking access to credit.

At Preem & Partners, we recognize the critical importance of robust privacy data protection frameworks in fostering consumer trust and ensuring fair business practices. We are always ready to advise data controllers or provide support in enforcing data subject rights and resolving related disputes.